#1 Using the Wal-Mart, Inc. financial statements provided on Blackboard, calculate and interpret the current liabilities ratios (including cash cycle) we discussed in class. Question #2 Using the Wal-Mart, Inc. financial statements provided on Blackboard, calculate and interpret the long-term liabilities ratios we discussed in class. Question #3 You are the controller of a firm whose CEO believes that debt should always be used to finance long-term expenditures because interest is tax deductible. List and describe other benefits to debt financing. Also, list and describe risks to using debt. Question #4 Given the following information, calculate the firms WACC: Tax rate: 40% Debt rate: 6% Preferred stock dividend rate: 11% of $100 par value Risk-free rate of return: 2% Market rate of return: 13% Stock beta: 1.2 Debt value: $15,000,000 P/S value: $5,000,000 C/S value: $30,000,000